Why could inflation be persistent in times of output gaps? Because of inflation expectations O a. O b. Because of wage contracts that were signed some time ago Because of menu costs in adjusting prices frequently O d. All of the answers are correct

Why could inflation be persistent in times of output gaps? Because of inflation expectations O a. O b. Because of wage contracts that were signed some time ago Because of menu costs in adjusting prices frequently O d. All of the answers are correct

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 22CTQ: Inflation rates, like most statistics, are imperfect measures. Can you identify some ways that the...

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Concept explainers

Unemployment and Cost of Unemployment

Unemployment is the state of being unemployed, even when an individual is actively seeking work opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed.

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Why could inflation be persistent in times of output gaps?
O a.
Because of inflation expectations
O b. Because of wage contracts that were signed some time ago
O c. Because of menu costs in adjusting prices frequently
O d. All of the answers are correct

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